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Hawai‘i Attorney General Doug Chin, 48 other state attorneys general, the District of Columbia and over 45 state mortgage regulators have reached a $45 million settlement with New Jersey-based mortgage lender and servicer PHH Mortgage Corporation.

The settlement resolves allegations that PHH, the nation’s ninth largest non-bank residential mortgage servicer, improperly serviced mortgage loans from Thursday, Jan. 1, 2009, through Thursday, Dec. 31, 2012. The agreement requires PHH to adhere to comprehensive mortgage servicing standards, conduct audits, and provide audit results to a committee of states. The settlement does not release PHH from liability for conduct that occurred beginning in 2013.

Borrowers who were subjected to PHH foreclosures during the eligible period will qualify for a minimum $840 payment, and borrowers who faced foreclosures that PHH initiated during the eligible period, but did not lose their home, will receive a minimum $285 payment. Approximately 67 Hawai‘i borrowers are eligible. A settlement administrator will contact eligible payment recipients at a later date.

The settlement:

Provides $31 million in cash payments for up to 52,000 borrowers who lost their homes to foreclosure (Hawai‘i had 19 borrowers) from Thursday, Jan, 1, 2009 to Thursday, Dec. 31, 2012, or were in the foreclosure process (Hawai‘i had 48 borrowers) during that period

Mandates that PHH submit an administrative penalty of $8.8 million to state regulators

Establishes a set of servicing standards the company must follow going forward

“This settlement demonstrates a core responsibility of state regulators to protect consumers from bad actors and bad business practices,” said Financial Institutions Commissioner Iris Ikeda. “With this settlement, we are making it clear that we will not tolerate mortgage servicers that harm consumers in anyway. As part of this settlement, States are requiring corrective actions so that PHH’s future mortgage servicing activity ensures timely and accurate processing of loan payments.”

How much residents of each state owe on their mortgages is an interesting statistic. For the most part, residents of the states with the highest average mortgage debt are not in trouble.

While the average home price in these states dropped in value during the recession, the foreclosure rates in these states are among the lowest in the country.

The reason: residents of these states can generally afford to lose and owe more money than their counterparts in other states. 24/7 Wall St. examined a recent report by Credit Karma to find the 10 states with the highest average mortgage debt.

Hawaii has the highest median home value in the country at $525,000. This is $154,000 more than the next highest state. Needless to say, taking out a mortgage on a home in the island state is a tremendous financial commitment. But with extremely low unemployment, high median income, low poverty and the second-highest rate of health insurance coverage in the country, Hawaii homeowners can generally afford it.